Tag: Allstate news

Allstate catastrophe losses reach $982 million for April and May 2020

H. Cutner
Allstate catastrophe losses

In a recent announcement, the insurer showed that May’s figures weren’t as high as those in April. Allstate catastrophe losses have reached $982 million for the combined months of April and May. May alone was responsible for estimated losses of $350 million. This will translate to $277 million after tax. The American insurer had already announced its figures for April, which were an estimated $632 million. In April, the announcement showed that the Allstate catastrophe losses were a notably higher pre-tax estimated $632 million. That would convert to $499 million after…

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Allstate makes changes to its controversial agent commissions plan

Marc

Allstate has announced that it will be revising its compensation plans for independent insurance agents. The company will be revising its commission strategy and pay system for agents, with the changes to take affect beginning in 2013. The new changes will be enforced throughout 2013, but the insurer has not yet revealed plans on what will happen thereafter. Allstate’s changes aim to reduce compensation for most agents, save for captive agents that work solely with the company. The insurer plans to cut commissions by 1%, bringing independent agents’ base commission…

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Progressive and Allstate come to settlement about patent use

Nordstrom

Allstate Corp and Progressive Corp, the auto insurers, have reached a settlement for a patent dispute that had been occurring between the two insurance giants, which was over technology that allowed the companies to alter a driver’s premiums based where, how, and how frequently he or she drives. The dispute began when Progressive filed a lawsuit against Allstate, claiming that the latter had infringed on patents and trademarks owned by the former, which are a part of “usage-based” insurance. Progressive released a statement that explained that some of its patent…

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Allstate sues 10 New York area defendants for $5 million in insurance fraud

Julie Campbell

Allstate Insurance Company has filed a lawsuit against 10 defendants in the New York area in order to help to recover $5 million in fraudulent insurance claims. This is the company’s fourth lawsuit of this nature this year. The complaint includes specific mention of five medical professional corporations, a physician, one corporation, and three individuals who are not physicians. Thirty one fraud lawsuits worth over $170 million in damages have been filed by Allstate in the state of New York since 2003. New York state is a hotbed of insurance…

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Independent Allstate agents look toward unionization

The National Association of Professional Allstate Agents (NAPAA) is looking to unionize as independent Allstate agents accuse the insurer of unfair treatment. Agents are claiming that the company is manipulating independent contractor rules for their benefit as well as reducing compensation for agents. The association, which accounts for nearly 10% of Allstate’s agent force, will be holding votes over the course of the week to determine whether aligning with a union is in the best interest of its members. If members choose to unionize, the NAPAA will become affiliated with…

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Allstate loses over $2 Billion in period between April and May

Allstate Corp., has announced that in the two month span between April and May, its catastrophe losses were greater than $2 billion.  According to Allstate, which is the biggest publically traded home and auto insurance company in the United States, the losses within these two months matched that of their losses for the entire 2010 year – which totaled $2.21 billion.  This was primarily the result of massive devastation due to severe thunderstorms and tornadoes.  In fact, April and May 2011 have now become one of the worst two-month periods…

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Allstate Insurance growth outlook

Marc

Allstate is looking to improve its home and auto insurance units by 2013. Executives at the massive insurance company spoke with investors the other day regarding the matter, saying that focusing on these units will help them recover from losses earlier this year.  Allstate’s auto insurance unit has been hemorrhaging clients for three consecutive years, a trend that executives expect to continue throughout 2011, only to see modest growth again in 2013. The renewed focus on these units comes after Allstate’s CEO, Tom Wilson, reported “inadequate returns.” As far as…

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